They want the institutions to buy their stocks ie pension funds etc. These companies don't care about the small guy.
John, do you have any first hand experience on the part of EMC looking at its individual shareholders in this manner?
For my part, they have bent over backwards to keep me informed and have been very good to work w/.
Investors have to pay commissions on twice as many shares after a 2-for-1 split.
I would suggest then that such investors change their broker. Most discount brokers charge the same commissions whether the transaction involves 100 shares, 500 shares, or 1000.
Obviously, the commission charge is the commission charge, but the more shares one buys, the smaller the allocation of the commission to each share.
Besides, Mr. Rollins feels the stock price tends to zigzag more after a split as well.
Maybe somebody should explain to Mr. Rollins that all share prices zigzag, that nothing moves in a straight line.
And despite Rollins' view to the contrary, there have been many academic studies of stocks that have split vs. those that have not, w/ the results showing that the stocks that split tend to outperform the others in the 12 mos. following the split.
John, I totally understand that split vs. no split, I still own the same portion of the co., and a split does not increase the value of my equity in the co. I also agree that there are costs associated w/ administering splits. But when the share price has appreciated to the level EMC's has (compared to past share prices), I don't think that it would be wasteful for the co. to declare a split. And I am highly confident they will, but just not right now, for the obvious reason.
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